End of year checklist

Before you process the Year End payroll electronically through our payroll module, there are a few checks you need in place to ensure that your results are accurate and compliant.

We will look at the measures you need to have in place first from a compliance perspective and then from an accounting perspective to ensure your reports balance.

The following check points are specifically related to Individual – Non Business Payment Summaries however you can apply the concepts to other types of payment summaries.

  • 1. Ensure that your employee’s personal information is accurate.

The ATO use the employee’s Date of Birth, Tax File Number and Address to validate the information that the employee submits on their tax return as well as validating information from other agencise such as Superannuation Funds, Centrelink and Medicare.

  • 2. Identify the perios which the payments relate to.

If the employee commenced after the first of July or terminated before 30 June, these are the dates that should appear in the “Period During Which Payments Were Made” field respectfully.

  • 3. Ensure that your employees have provided you with their Tax File Number.

In the event that you do not have a Tax File Number for your employee, you will need to populate the TFN with one of the options advised by the ATO. These options are available to choose via Employee Profile > Tax File Declaration.

  • 4. Any payments that are reportable as per the ATO’s guidelines should appear on the employee’s payment summary. The most common types of payments for individuals are:
  • Gross earnings
  • Allowances
  • Reportable Superannuation Contribution (RESC)
  • Reportable Fringe Benefits (RFBA)
  • Lump Sum Payments

As well as showing the payment you have made to your employees, you will also need to complete the fields for deductions such as “Union Fees” and “Workplace Giving”.

It is also important to ensure that internal records and the data held in Accounting and Payroll records balance. A good way to audit this process would be to perform reconciliations for PAYG, Superannuation and othe third party payments that you may have made. More details are avaialble in Year End Reconciliation